@techreport{Gong2000Mobility,
abstract = {We analyze mobility in urban Mexico between three labor market states: working in the formal
sector, working in the informal sector, and not working. We use a dynamic multinomial logit
panel data model with random effects, explaining the labor market state of each individual during
each time period. The data is drawn from Mexico ?s Urban Employment Survey, a quarterly
household survey for urban Mexico. Two separate five-wave panels are used: the first covering
a period of rapid economic growth (1992 ?1993), the second a period of recession after the
Peso crisis (1994 ?1995).
Our main results are in line with the theory that formal sector jobs are superior to informal sector
jobs and that working in the informal sector is a temporary state for those who cannot find a
formal sector job and cannot afford not to work. Entry and exit rates for the formal sector are
lower than for the informal sector. The probability of formal sector employment strongly
increases with education level. For men, it is easier to enter the formal sector from the nonworking
state than from the informal sector. The probability of working in the informal sector
decreases with the level of income of other family members, while the probability of not working
increases with it.},
address = {Bonn},
author = {Xiaodong Gong and Arthur van Soest and Elizabeth Villagomez},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {R23; C23; C25; J60; 330; Informal sector work; mobility; panel data; Mexico; Arbeitsmobilit\"{a}t; St\"{a}dtischer Arbeitsmarkt; Informeller Sektor; Dual\"{o}konomie; Sch\"{a}tzung; Mexiko},
language = {eng},
number = {213},
publisher = {Institute for the Study of Labor (IZA)},
title = {Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21058},
year = {2000}
}